'Hold' MLT as it remains resilient and is key beneficiary of e-commerce growth

SINGAPORE (July 21): OCBC Investment Research has a “hold” call on Mapletree Logistics Trust (MLT) with a higher fair value estimate of $2.07 from $1.79 previously.

This came following the trust yesterday announcing that its 1QFY20/21 DPU has increased by 1.0% y-o-y to 2.045 cents, with gross revenue and net property income increasing by 10.5% and 12.0% to $132.4 million and $118.8 million, respectively.

The improvement in results were driven by both organic and inorganic growth, but partially offset by rental rebates granted to eligible tenants impacted by the Covid-19 outbreak and absence of contribution from six divested properties completed in FY20.